It is because the selling pressure is more than the buying intent. This is a straightforward reply, but a human brain is very unique. It does not want to accept a simple easy answer.
Basic economics 101, price of goods increases when there is more demand than the supply. Imagine if Samsung or Apple release 5G limited edition smartphones with only 1000 pieces will ever be manufactured. How big is the demand needs to be met?
There are more sellers than the buyers, people want to sell in bulk thus the wholesale price will apply. Bitcoin is On Sale! with a Big discount!
Interestingly, this is not coincidental. Why?
Let's recall what happened leading to December 2017, Bitcoin made an all time high! Hype and Euphoria has urged people "want" to buy Bitcoin badly. Those who never heard of Bitcoin has become fully aware and fear of missing the opportunity. It was dangerous period for an in-experienced buyers to make a decision, jumping the train without knowing the direction it goes.
Mr. Market does not have any friend, this is what my teacher says. Neither friend nor heart, so don't get it wrong. Neither he likes nor dislike us, he's only following those who have more money and power.
Remember the Aladdin story? the Genie said "I do not obey but the master, that's written in my contract".
Since we have a common agreement now on two things at least: One, why the price goes up and down. Two, who is Mr Market.
The third one, we will discuss now, who is the Master"?
Let us look closely the Genie's case, he only follows the master, Why? Because only the Master can set him 'free'.
Then, can we say that the Master should posses some kind of power to do so?
The Master in the market obviously the one who owns money, power, knowledge and experience.
Before the Futures Exchange listing in 2017, bitcoin was purely traded from hand to hand just like the old days barter where we have to buy the items first before selling it. This has ultimately driven the price traditionally high, because any selling action has to start with the buying activity.
Have we heard some people asking "Are you buying stock?" more often than the one asking "Are you selling stock?". Exactly, this is the conventional perspective of the market. What we heard is only buying, and that was the case with Bitcoin.
While, the Master is contemplating on how to participate in this biased-euphoric buying streak. He's reminded once, there was one vehicle normally used to hedge the position on a particular asset or commodity. Yes, it's none but Futures trading.
One of the unique features of Futures is --for the sake of our conversation-- to Sell what we do not have.
Well, technically it involves a complex mechanism but let's keep it simple this way "I do not need to buy Bitcoin, in order to sell"
"Is the Master interested in Bitcoin, the decentralized monetary system, the new economy, the savior, the liberator, and so on and so forth.."
Well, maybe yes. But not as much different as Mr Market, the Master does not really bother falling in love with the decentralized stuff or Bitcoin for that matter. The Master is only interested in the opportunity to make money". I heard one saying "volatility means money", Bitcoin in 2017 was at the peak of its volatility but in one direction -- Do we agree?
With the magic lamp in hand, The Master now is in control.
He has money obviously and power as good as lobbying weapon. With the power, the Master is able to convince the regulators in order to get Bitcoin listed in the Futures Exchange. And with the knowledge and experience, as he has done many many times in the past; 'Selling at the Peak', shorting Gold, create panic, cashing out people's greed.
In 2019 this will happen again! --wow, I feel like a fortune teller--. Actually I borrowed this statement from the analysts mostly featured in both nations media or just any social channels. But I kind of agree with them, because Mr. Market has a pattern, just like a weather there is sunny, cloudy, or even winter. Some professionals call this as 'Uptrend, Sideways, and Downtrend'. What will Bitcoin be in the winter 2019, then? Winter, the answer was in the question --gotcha.
This news about the listing, BAKKT, futures indices, and so on and so forth was prepared by the Master, if I am allowed to guess. Because when I backtracked since April 2019, there were too many flowers and love letters thrown out in the mainstream media on account of Bitcoin. We are watching this Telenovela, Romantic series until last month, August 2019.
How long did the Master take to finally perform the show? 5-6 months. Yes, it is more than enough time for him to prepare another "new vehicle" to win the race down the floor. He had Cboe, CME, ICE vehicles to choose, yet many more to come...
What should we do now, should we join the race? If the Master says so.
Or let's cut the clutter, and look through the noise. I can see there is a better way than to join the race, besides we want to promote the decentralized economy for our future generation.
If the Master can wait for 5-6 months to play out his scenario, why can't we? And I hope it does not take the same time to wait for Bitcoin to get back on track. There is a space as we can see, where buyers and sellers are settling their agreement. That level between 7400-ish to 8700-ish where the truce took place.
The deciding level, then, obviously outside this level either up or down. The stronger the buyer, the further the price will go up and vice versa. However, we have to look at the background story created by the Master or the storyboard. Will it be a 'love story' or 'tragedy' this time?
Different audience has different views, and my view (I have to take side) providing all the facts, the Master wants a 'tragedy' so that he can alternate the stories next time. Otherwise it's gonna be boring, watching the same thing throughout the year.
We will test our patience to wait when the 'love story' is about to begin. It can be between 5000 to 6000-ish, but I don't mind watching and indulging in this, or terribly will join at around 6500-ish level.
The wise thing to do is to vigilantly watch what kind of story the Master is planning to play.
I wish you have a good journey, and make lots of money to buy chips. Share this story with others as if sharing a bag of chips.
Not to forget to buy me chips if you love this story. Have a great weekend!